What has happened and the source

On 6 October 2026 the Council of Ministers approved Royal Decree-law 29/2026 on the social function of housing. It was published in the BOE on 7 October and came into force the next day. It largely repeats Royal Decree-law 26/2026, which Congress rejected on 2 October.

The decree’s preamble explains that Article 3 changes the Urban Leases Act so that:

• a temporary let requires “a real and provable cause of displacement from the habitual residence” (for example, work, study or medical treatment);
• it must last more than thirty-one days and, as a general rule, not more than twelve months;
• a let that runs beyond twelve months without justification, or more than two consecutive contracts between the same parties for the same home, is treated as a habitual residential lease from the first contract;
• rent increases between successive temporary contracts on the same home are limited by the official rental index (IRAV);
• when rooms are let separately, the total rent of all room contracts cannot exceed the rent of the whole home.

Article 20 adds that rental adverts must show the property’s registration number where one exists.

What it means for second-home owners

Many foreign owners let their Spanish home for part of the year: a winter let in Marbella, a few months in Palma for a visiting professional, or an academic-year let in Málaga. These lets are usually signed as arrendamientos de temporada, which until now had fewer rules than an ordinary residential lease.

Under the new rules, the contract must state why the tenant needs the home temporarily, and you should keep evidence of it, such as an employment letter, study enrolment or medical appointment. A contract that simply calls itself “seasonal” is no longer enough.

The biggest risk is reclassification. If the let is treated as a habitual residential lease, the tenant gains the protections of the Urban Leases Act, including the right to extend the contract for up to five years, or seven if the landlord is a company. For an owner who wants the home back for the summer, that is a serious change.

Timeline

What to check

Also check the regional rules. In the Balearic Islands and Andalusia, letting to tourists needs its own registration, and many flats cannot be let to tourists at all. See our guides to tourist rental licences in Mallorca and community approval for tourist flats.

Legal context

The Urban Leases Act (Law 29/1994) distinguishes leases for a habitual residence from leases for other uses, which include seasonal lets. Habitual residential leases carry minimum terms and tenant protections. The 2023 Housing Law and the 2026 decrees have narrowed the space for using seasonal contracts in place of ordinary leases.

Royal Decree-law 29/2026 also contains measures on rent increases, contract extensions and tourist lets. We cover these in our guide to Spain’s housing law and the October 2026 decrees and our article on 10% VAT on Balearic tourist lets.

Next steps

• Review any temporary contract signed or renewed since 8 October 2026.
• For new lets, state the tenant’s reason for the stay in the contract and keep copies of the evidence.
• Do not chain contracts with the same tenant without advice.
• Check that your adverts show the registration number where one applies.
• Follow the validation vote in the Permanent Deputation.

Frequently asked questions

Can I still let my Spanish holiday home for the winter?

Yes. A let of more than 31 days and up to 12 months is still possible as a temporary let, but the tenant must have a real, provable reason for being away from their usual home, and this should be stated in the contract.

What happens if I renew a seasonal contract with the same tenant?

Under Royal Decree-law 29/2026, more than two consecutive contracts between the same parties for the same home turn the arrangement into a habitual residential lease from the first contract.

Are these rules already in force?

Yes. They have applied since 8 October 2026. The decree still has to be validated by the Permanent Deputation of Congress, and would lapse if rejected.

Do the rules apply to tourist lets of a few nights?

No. Stays of 30 nights or fewer are tourist or short stays, with their own licensing rules and, from 1 December 2026, 10% VAT where the home is not the owner’s habitual residence.

Source and scope: BOE, Royal Decree-law 29/2026 of 6 October (BOE-A-2026-20823), published 7 October 2026, in force 8 October 2026, preamble and Articles 3, 7 and 20; Congress vote on Royal Decree-law 26/2026, 2 October 2026. The quoted requirements are taken from the decree’s official summary; check the consolidated text in the BOE for the exact wording. Information correct at 20 October 2026. General information, not individual legal advice.

Sophie

Sophie Gutenberg is a legal content specialist focused on Spanish property law, real estate transactions, conveyancing, due diligence and tax issues affecting international property buyers in Spain. She works alongside qualified Spanish property lawyers .

The post Seasonal Lets in Spain After RDL 29/2026: New Rules for Second-Home Owners appeared first on Property Lawyers.

Short answer: Since 3 April 2025, anyone who wants to run a tourist let in a flat governed by Spain’s Horizontal Property Act needs the express prior approval of the community of owners, voted by a three-fifths majority. Owners already operating lawfully before that date are protected by a transitional rule, but a 2026 decision of Spain’s registry authority confirms that protection does not pass to a buyer who completes after 3 April 2025.

What the law says, and where it comes from

Organic Law 1/2025 of 2 January, mainly a justice-efficiency reform, amended the Horizontal Property Act. New Article 7.3 says an owner who wants to carry on the tourist-rental activity must first obtain the express approval of the community of owners. If there is no approval, the community can require the activity to stop.

Article 17.12 sets the majority: three-fifths of all owners, representing three-fifths of the participation quotas, to approve, limit, condition or prohibit tourist lets. The same majority can set special charges or increase the flat’s share of common expenses, by no more than 20%. These agreements have no retroactive effect.

In text form: changes to the title or statutes not covered elsewhere need unanimity; tourist-let agreements need three-fifths of owners and quotas; other ordinary agreements need a majority of owners and quotas.

Why this matters for buyers

The reform protects owners who were already running a registered tourist let before 3 April 2025: they may continue under the conditions of their tourism registration. The question for buyers is whether that protection travels with the flat.

A resolution of the Dirección General de Seguridad Jurídica y Fe Pública of 19 March 2026 (published in the BOE on 9 July 2026) answered no. A company bought a flat in Santa Pola with a Valencian tourist licence granted in 2023. The deed was signed on 7 April 2025. The registrar refused a short-term rental registration number because the community had not approved tourist use.

The Directorate-General held that ownership passed on signing the deed, not when the price was paid, so the buyer acquired after 3 April 2025. The transitional rule protects the owner who was already operating, not a new owner. Community approval was therefore required. It also treated the tourist licence as linked to the property, so a change of holder did not have to be proved to obtain the number.

What to check before you commit

Legal context

Three layers apply to a tourist flat: the community of owners (national Horizontal Property Act), the regional tourist licence (for example Balearic or Andalusian tourism law) and municipal planning, which may restrict tourist use in some zones. Each must be satisfied separately. Agreements under Article 17.12 cannot be applied retroactively against an owner already operating lawfully, but a new buyer is treated differently, as the 2026 resolution shows.

Next steps

1. Ask the seller for community minutes and a certificate from the administrator before paying a deposit.
2. Have your lawyer check the nota simple and the regional licence register.
3. Make tourist-use approval a condition in the arras contract if rental income matters to you.
4. Check municipal planning restrictions for the area.

Frequently asked questions

Does a tourist licence transfer automatically when I buy the flat?

Not on its own. If you complete after 3 April 2025, you also need community approval to run the activity, according to the 2026 Directorate-General resolution.

What majority does the community need?

Three-fifths of all owners, who must also represent three-fifths of the participation quotas.

Can the community charge a tourist flat more?

Yes. By the same majority it can set special charges or raise the flat’s share of common expenses, by no more than 20%.

Does the 2025 rule apply to detached villas?

It applies to properties under the Horizontal Property Act, such as flats and homes on shared developments. A standalone villa outside any community is not covered, but regional and planning rules still apply.

Source and scope: Ley 49/1960 de Propiedad Horizontal, Articles 7.3, 17.6, 17.7 and 17.12, as amended by Organic Law 1/2025 of 2 January (in force 3 April 2025), BOE consolidated text; Resolution of the Dirección General de Seguridad Jurídica y Fe Pública of 19 March 2026 (BOE-A-2026-14977, 9 July 2026); Supreme Court judgment 620/2026 of 19 May 2026 on Royal Decree 1312/2024. Checked on 18 October 2026. General information, not individual legal advice.

Sophie

Sophie Gutenberg is a legal content specialist focused on Spanish property law, real estate transactions, conveyancing, due diligence and tax issues affecting international property buyers in Spain. She works alongside qualified Spanish property lawyers .

The post Buying a Flat With a Tourist Licence in Spain: Community Approval Rules appeared first on Property Lawyers.

Short answer: Royal Decree-law 29/2026, in force since 8 October 2026, would end the VAT exemption for furnished tourist lets of 30 nights or less in a home that is not the landlord’s main residence, applying 10% VAT from 1 December 2026. The decree still has to be validated by Congress; the vote is expected on 12 November. Owners in Mallorca, Ibiza and Menorca should prepare for both outcomes rather than assume either.

What has happened, and where it comes from

On 6 October 2026 the Council of Ministers approved Royal Decree-law 29/2026 on urgent measures to protect the social function of housing and expand affordable supply. It was published in the Boletín Oficial del Estado (BOE-A-2026-20823) on 7 October and entered into force on 8 October.

It replaces an earlier decree. Royal Decree-law 26/2026 of 29 September contained a similar VAT change, but the Congress of Deputies voted not to validate it on 2 October 2026 and it was repealed (BOE-A-2026-20526). Because the VAT measure was due to start on 1 December, it never applied to any stay.

Article 7 of the new decree amends the VAT Act (Ley 37/1992). Furnished flats and houses let for stays of no more than 30 nights per guest, where the home is not the landlord’s habitual residence, would no longer be exempt and would be taxed at the 10% reduced rate. Lets that include hotel-type services were already outside the exemption. Both VAT changes have effect from 1 December 2026.

A decree-law must be validated by Congress within 30 days of its promulgation (Article 86 of the Spanish Constitution). Reports published on 16 October indicate the Diputación Permanente of Congress is expected to vote on 12 November 2026. Until that vote, the outcome is open.

What it means for Balearic owners

If the decree is validated, owners letting a second home to tourists for short stays would start charging VAT on bookings made for stays from 1 December. In practice that can mean registering for VAT with the Agencia Tributaria, issuing invoices and filing periodic returns. Non-resident owners should ask an adviser whether they also need a tax representative in Spain.

If the decree is not validated, it will be repealed before 1 December and the current position continues: residential lets are generally VAT-exempt, but lets with hotel-type services are taxed at 10%.

The decree also lets town halls in declared stressed housing areas (zonas de mercado residencial tensionado) impose an IBI surcharge on tourist homes through a tax bylaw. On 1 October 2026 the President of the Balearic Government, Marga Prohens, said the Balearic Islands do not apply the stressed-area mechanism of the Housing Act, as reported by Europa Press. While that remains the case, Balearic councils would have no basis to apply the surcharge. Owners should still check the position with their town hall.

In text form: the surcharge can reach 50% of the IBI bill, 100% for owners of two or more residential properties and 150% for owners of four or more. These are maximums; each council decides whether to apply any surcharge.

What to check now

Legal context

VAT is a state tax, so the change applies across Spain. Tourist licensing in the Balearic Islands is a regional and island-council matter, and nothing in this decree changes the ETV licence system. The IBI surcharge depends on a stressed-area declaration under Spain’s Housing Act (Ley 12/2023), which is made at regional level. The decree also contains IRPF, SOCIMI and plusvalía measures that are outside the scope of this update.

Next steps

1. Note 12 November 2026 and check the outcome of the validation vote.
2. Review December and January bookings and how prices were quoted.
3. Ask a tax adviser how VAT registration and invoicing would work for your situation.
4. Confirm with your town hall whether any IBI surcharge is planned.
5. If you are buying a licensed property, ask your lawyer to add the VAT point to due diligence.

Frequently asked questions

Is 10% VAT on Balearic holiday lets already in force?

Not yet. The decree is in force, but the VAT change only takes effect on 1 December 2026, and the decree must first be validated by Congress, with a vote expected on 12 November 2026.

Which lets would be affected?

Furnished flats and houses let for stays of up to 30 nights per guest where the home is not the landlord’s main residence. Lets with hotel-type services were already taxed at 10%.

Does the IBI surcharge apply in Mallorca?

Only in municipalities within a declared stressed housing area, and only if the council adopts a tax bylaw. On 1 October 2026 the Balearic Government said it does not apply the stressed-area mechanism, so the surcharge has no current basis in the islands; check locally for any change.

What happens if Congress rejects the decree?

It is repealed and the VAT change does not take effect, as happened with Royal Decree-law 26/2026 on 2 October 2026.

Source and scope: Royal Decree-law 29/2026 of 6 October (BOE-A-2026-20823, published 7 October 2026); Resolution of 2 October 2026 repealing Royal Decree-law 26/2026 (BOE-A-2026-20526); Spanish Constitution, Article 86. Vote date as reported on 16 October 2026; Balearic position on stressed areas as stated by President Marga Prohens on 1 October 2026 (Europa Press). Checked on 18 October 2026. General information, not individual legal advice.

Sophie

Sophie Gutenberg is a legal content specialist focused on Spanish property law, real estate transactions, conveyancing, due diligence and tax issues affecting international property buyers in Spain. She works alongside qualified Spanish property lawyers .

The post Balearic Tourist Lets: 10% VAT From 1 December and the 12 November Vote appeared first on Property Lawyers.

So when it’s time to see a return on your efforts, you need to know you’re taking the best possible approach.

Please note, this information is not intended as legal advice. To find a local lawyer, please see our registry.

Letting your property in the Balearic Islands

There are many reasons you might decide to keep your property rather than sell. Letting it on a long- or short-term basis can be a way to cover your costs and see a return on your investment.

There are sometimes other advantages to keeping your property, too, such as tax benefits or different visa options. Owning a rental property can also give you flexibility for holidays and future plans. Whatever you decide, it’s important to carefully weigh up the pros and cons and seek professional advice where necessary.

Tourism in the Balearic Islands

Tourism is a massive industry in the Balearic Islands. As Rosana Morillo, the director general of tourism in the Balearic Islands told National Geographic, tourism directly accounts for 25% of the islands’ income. In 2019, 11.8 million visitors reportedly headed to Mallorca alone, showing the scale of the market.

While it may take a while for travel to pick up to normal levels post pandemic, investors can see how important tourism is for the region.

Thinking about the practical details

As far as holiday lets go, they are increasingly popular with international tourists visiting Spain. However, rules and regulations for rentals vary depending on the region.

For instance, if you decide to let your property to tourists in the Balearic Islands, you’ll need to apply for an ETV license. This is a mandatory permit, granted on a case-by-case basis to properties that fulfil specific criteria. If you haven’t yet bought a property and are set on the idea of holiday lets, you could opt to buy a home that comes ready with an ETV license. Different rules apply for other types of lets.

It’s also important to consider your property from the viewpoint of a prospective renter. Is it located close to amenities? Does it come with a view? Is it easy to get to from the airport? If the answer to these questions is no, that doesn’t mean your plan is a non-starter; you’ll need to think about your target market and consider your options.

Meanwhile, property management doesn’t have to be an issue, even if you’re abroad. Many reputable lettings agencies and estate agents offer property management services, from mail handing to 24/7 assistance.

Selling your Balearic Property

The COVID-19 pandemic shook industries across the world. Despite the disruption and reduced sales, The Financial Times reported that, according to the Ministry of Development, the average price for a Mallorcan home sold in 2020 was €303,415, up 14 per cent from 2019.

Pre-pandemic, Balearic Properties estimated a 6% rise in the luxury property market in Mallorca until 2022. Reports also suggest that recent demand in the luxury property sector has been more stable than for other property types. Even so, it’s important to research current market trends when deciding to sell and to make sure it’s the right option for you.

Practicalities of selling a property in the Balearic Islands

By working with a reputable and local estate agent, you can take advantage of insider knowledge, marketing channels, and impressive track records. It’s advisable to work with a local property lawyer, too, who can help you understand the process and avoid common pitfalls, such as problems with costs or fine print.

Getting the right team of experts in place means a smoother process all round. For example, they can help you ensure you have the appropriate documents (such as energy certificates and the title deed, amongst others), and work out which taxes and fees need to be paid and when.

It’s best to work with experienced professionals who speak your language as well as the local language(s) to avoid misunderstandings.

Finding a lawyer in the Balearic Islands

If you need a real estate law expert, we’re here to help. We’ve helped over 1000 clients find a property lawyer to protect their interests. The right Spanish property lawyer can help prevent problems, handle issues, and provide key advice.

To get started, simply search for a property lawyer in Mallorca, Menorca and Ibiza or another area of Spain.

Alternatively, have a look at our blog articles to see other resources relating to real estate investments, property insights, and more.

Sophie

Sophie Gutenberg is a legal content specialist focused on Spanish property law, real estate transactions, conveyancing, due diligence and tax issues affecting international property buyers in Spain. She works alongside qualified Spanish property lawyers .

The post Do you want to sell or rent your property in the Balearic Islands? appeared first on Property Lawyers.